Sensex ends Samvat 2073 with 17% gain, Nifty up 18%

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4:04 PM

Diwali Muhurat trading from 6.30 pm to 7.30 pm on Oct 19 

3:54 PM

Market outlook by ICICI Securities

 

Equity markets across DMs and EMs continued to hit new highs although EM bonds saw mixed performance last week. Volatility continued to be low, which shows that risk appetite is rising.Post the recent market correction in Sep ’17, small-caps (+7.85%) and mid-caps (+ 4.95%) have outperformed large-cap stocks (+4.43%) despite large-cap valuation at a discount to mid-cap valuation. Although markets have reacted positively to the emerging reality, there is a palpable uncertainty around the near-term growth outlook for the Indian economy, which could manifest itself in the wake of incremental disappointing data around growth.

 

View on earnings

 

Our Q2 FY18 preview suggests that Nifty PAT could expand by ~11% YoY largely driven by  commodity and financial stocks. Amongst financials, retail lenders continue to register robust earnings growth while volatility is seen in the corporate lending segment. In the non-financial segment, auto (ex 2-wheelers), cement, telecom, pharma and IT are expected to put pressure on Q2FY18 earnings. Consumption-related sectors, industrials and utilities are expected to report growth in mid to high single digits.

3:46 PM

S&P BSE Sensex, Nifty50 indices end Samvat 2073 with 16.7% and 18.5% gain, respectively CLICK HERE FOR OUR FULL COVERAGE ON MARKETS IN SAMVAT 2073

3:43 PM

Sector watch
Index	Current Value	Ch (pts)	Ch (%)
S&P BSE Basic Materials	3346.54	-5.38	-0.16
S&P BSE Energy	4202.38	102.65	2.5
S&P BSE Fast Moving Consumer Goods	10268.13	14.44	0.14
S&P BSE Healthcare	14170.59	-114.07	-0.8
S&P BSE Information Technology	10369.08	-36.16	-0.35
S&P BSE Telecom	1571.23	-29.8	-1.86
S&P BSE Utilities	2162.68	28.05	1.31
S&P BSE AUTO	24949.57	-102.25	-0.41
S&P BSE BANKEX	27186.77	-494.76	-1.79
S&P BSE CAPITAL GOODS	17462.07	-60.88	-0.35
S&P BSE CONSUMER DURABLES	18310.38	-104.53	-0.57
S&P BSE METAL	14674.03	-74.48	-0.51
S&P BSE OIL & GAS	16002.81	195.43	1.24
S&P BSE POWER	2269.89	27.17	1.21
S&P BSE REALTY	2169.77	-1.86	-0.09
Source: BSE

3:40 PM

Markets at close

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,584.35	-24.81	-0.08
S&P BSE SENSEX 50	10,598.29	-22.71	-0.21
S&P BSE SENSEX Next 50	34,889.59	-91.23	-0.26
S&P BSE 100	10,612.71	-23.55	-0.22
S&P BSE MidCap	16,115.98	+1.48	+0.01

(Source: BSE)

3:29 PM

Infosys Q2 preview

 

In dollar terms, Infosys is likely to report 3.6% sequential and 6.2% year-on-year (yoy) revenue growth at $2,748 million, say analysts at HDFC Securities. In rupee terms, revenues are likely to come in at Rs 17,585 crore. IT major is seen reporting a 2.6 per cent QoQ sequential growth in revenue in constant currency (CC) terms. The numbers may be supported by 95 basis points cross-currency tailwind, they said. The company is scheduled to announce numbers on October 24

 

Analysts at Kotak Institutional Equities expect CC revenue growth of 2.3% and CC tailwind of 80 bps. We expect lower cross currency tailwinds based on the assumption of lower forex gains from revenue hedges, they said in a note.

 

The company’s profit after tax (PAT) is expected to come in at around Rs 36,00 crore, up 1.8% yoy, but down 1.5% on a sequential basis, estimated analysts at Motilal Oswal Securities. JM financial sees 2.75 sequential jump in Q2 PAT at Rs 35,78 crore.

 

3:24 PM

• Nifty 50 Gainers/ Losers
• Most active 

 

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  Symbol	LTP	% chng	Volume
  RELIANCE POWERGRID IBULHSGFIN ONGC WIPRO	915.00 213.95 1,362.90 174.50 295.10	4.65 4.42 2.81 1.93 1.81	1,62,13,489 99,39,690 17,26,310 72,68,483 51,80,945

  View all

3:21 PM

From Diwali picks to Muhurat trading tips, market outlook for Samvat 2074

 

The new Samvat 2074 is likely to take the market through a path of uncharted territory as the curtain calls to an eventful Samvat 2073. From Narendra Modi-led demonetisation drive to the implementation of goods and services tax (GST) bill, the markets went through jitters, yet the Nifty 50 notched up gains of around 17 per cent. READ MORE

3:20 PM

Nifty PSU Bank index hits fresh 9-month low

 

Shares of public sector banks (PSBs) came under pressure with the Nifty PSU Bank index hitting fresh nine-month low on the National Stock Exchange (NSE). The index hit an intra-day low of 2,958 - its lowest level since January 6, 2017 - and has slipped 20% from its recent closing high of 3,723 on July 31, 2017.

 

By comparison, the benchmark Nifty 50 was up 1.4%, while Nifty Bank (down 3%) and Nifty Private Bank index (down 1%) were down less than 4% during the period CLICK HERE FOR MORE

3:19 PM

'Dr Doom' commentator Marc Faber faces backlash over racist remarks

Marc Faber, the Swiss investor based in Thailand, provoked a backlash from business television and investment management firms on Tuesday after comments in his latest newsletter suggested the United States had only prospered because it was settled by white people.

 

The investor and commentator, known as "Dr Doom" for bearish calls on stocks and the economy, was dismissed from the boards of Canadian fund manager Sprott Inc, NovaGold Resources Inc and Ivanhoe Mines Ltd after his remarks. READ THE FULL STORY HERE

3:03 PM

Centrum Broking on DCB Bank

 

We retain Hold on DCB Bank (DCBB) with target price at Rs172. While Q2’18 results were ahead of our estimates on revenue front (+30% YoY); higher than expected operating expenses saw PAT grow (21.5% YoY), in-line with our estimates. NIM dipped sequentially and we expect the trend therein to continue in H2FY18. Sequentially lower slippages, positive commentaries on growth and continued focus at containing operating costs remain key positives. While we remain positive on DCBB, valuations at 2x FY19E ABV offer limited near term upside.

3:00 PM

Markets at 3pm

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,619.67	+10.51	+0.03
S&P BSE SENSEX 50	10,608.78	-12.22	-0.12
S&P BSE SENSEX Next 50	34,911.43	-69.39	-0.20
S&P BSE 100	10,622.59	-13.67	-0.13
S&P BSE MidCap	16,134.95	+20.45	+0.13

(Source: BSE)

3:00 PM

Edelweiss on ACC September quarter results

 

Industry is reeling under challenges of subdued volume growth and pricing pressure, which we believe poses risks to earnings estimates of incumbents. But, ACC seems to be an exception – its impressive performances in Q3CY17 (EBITDA surged 47% YoY) and 9mCY17 (EBITDA up 24% YoY) is driving ~6% upgrade to our CY17 EBITDA estimates. 

 

Q3CY17 EBITDA was steered by: 1) Strong volume growth of 17.6% versus our 15.6% estimate, led by capacity expansion and negative base; 2) Better than expected realisation (adjusted realisation dipped ~1% QoQ versus 2% estimate; and 3) Tight leash on costs. 

 

Given the volume trajectory, we estimate Q4CY17 also to be strong. Going ahead, we remain optimistic on recovery in cement demand and prices and hence see limited risk to our CY18 estimates. Maintain ‘BUY’ with a target price of Rs 1,914 on FY19E.

2:57 PM

ICICI Securities on banks

 

South-based private sector banks are poised to register accelerated earnings growth going ahead as we believe asset quality ratios for most of them have peak out at current levels and loan growth is likely to revive after remaining muted over the past couple of years. Niche positioning in the respective home states, expertise in small-ticket loans to the self-employed segment and impeccable relationship-based banking model would ensure higher-than-industry growth for South-based banks. 

 

Against the above backdrop, we initiate coverage on Federal Bank (FB), City Union Bank (CUBK) and Karur Vysya Bank (KVB) with BUY recommendation, with potential upside of 18%, 19% and 18% respectively. We recommend HOLD for South Indian Bank (SIB) and Lakshmi Vilas Bank (LVB) with (1%) and 5% upside respectively.

2:41 PM

Markets off day's low 

At 2:40 pm, the S&P BSE Sensex was trading at 32,623, up 14 points, while the broader Nifty50 was ruling at 10,224, down 10 points.

2:32 PM

Nifty PSU Bank top sectoral loser 

Source: NSE

2:22 PM

From Diwali picks to Muhurat trading tips, market outlook for Samvat 2074

 

The new Samvat 2074 is likely to take the market through a path of uncharted territory as the curtain calls to an eventful Samvat 2073. From Narendra Modi-led demonetisation drive to the implementation of goods and services tax (GST) bill, the markets went through jitters, yet the Nifty 50 notched up gains of around 17 per cent. READ MORE

2:16 PM

Edelweiss Securities on Wipro

 

Wipro’s Q2FY18 performance was better than Street’s estimates with IT services revenue at $2,014 mn (up 2.1% QoQ, estimate 1.7%) and EBIT margin at 16.8% (up 80bps QoQ, estimate 15.8%). Key highlights: 1) Revenue grew 0.3% QoQ CC; 2) Muted revenue growth guidance of 0-2% for Q3FY18; 3) Positive commentary on BFSI and consumer verticals; 4) From Q4FY18 management expects industry-level growth; and 5) FY18E margins to remain at FY17 levels. 

 

We believe that with key verticals facing challenges, FY19E revenue growth will at best be at industry levels. In the past one year, the stock has given ~22% returns and is currently trading at 14.5x FY19E EPS. With revenue/EPS CAGR estimated at 6.8%/6.9% over FY17-19, the stock trades expensive. Hence, we downgrade to ‘HOLD’ with a revised target price of Rs 280 (earlier Rs 290).

1:55 PM

14 stocks that rallied over 50% each in last three Samvat years

 

Bajaj Finance, Dwarikesh Sugar Industries, V2 Retail, Motilal Oswal Financial Services and Caplin Point Laboratories are among 14 stocks from the BSE Smallcap and BSE-500 index that rallied over 50% each in last three Samvat years between 2071 and 2073. READ MORE DETAILS 

1:25 PM

IIFL on Axis Bank

 

We slash FY18/19 ABV estimates by 5‐10% factoring increased operational challenges and a larger deterioration in NPL situation. This credit cycle for Axis Bank is turning out to be deeper and stickier. We expect operational profitability and credit performance to stabilize only from H2FY19. Some of the ongoing favorable franchise trends would resonate fully in core profitability from FY20. 

 

The stock may extend its underperformance considering that RoA/RoE could remained depressed in the near‐to‐medium term and that valuation is not cheap at 2.1x FY19 P/ABV. While retaining Accumulate rating, we lower the 12‐month price target on Axis Bank to Rs 562.

1:05 PM

Broader markets little changed 

The BSE Midcap was trading flat at 16,114 levels, while the BSE Smallcap was up 0.1% at 17,085. 

1:04 PM

Markets check 

At 1:00 pm, the S&P BSE Sensex was trading at 32,556, down 52 points, while the broader Nifty50 was ruling at 10,208, down 26 points.

1:03 PM

Edelweiss Securities on Bajaj Finserv

 

We are enthused by improvement in operating variables across businesses. Bajaj Finserv is going strong with 35% plus asset and earnings surge. There has also been significant value discovery in life and general insurance businesses over past couple of quarters. Incorporating this in our target multiples for BALIC & BAGIC and also factoring in strong performance and capital raising at BFL, we revise our SOTP-based TP to Rs 5,337 (Rs 4,892 earlier). However, recent stock outperformance limits upside; hence, we maintain ‘HOLD/SP’.

12:37 PM

Markets in noon deals

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,506.65	-102.51	-0.31
S&P BSE SENSEX 50	10,576.44	-44.56	-0.42
S&P BSE SENSEX Next 50	34,870.12	-110.70	-0.32
S&P BSE 100	10,593.48	-42.78	-0.40
S&P BSE MidCap	16,105.49	-9.01	-0.06

(Source: BSE)

12:35 PM

Nirmal Bang Institutional Equities on Wipro Q2

 

Wipro has reiterated its guidance of FY18 margins being in a ‘narrow band’ vis-à-vis FY17 on constant-currency basis. We believe if that happens a large part would have been played by better INR/USD realisation on its revenues - quite unlike most of its peers - and benefits from automation. We have kept our USD revenue estimates constant but increased EBIT margins estimates by 60-100bps across the forecast period leading to improvement of EPS by ~5%. 

 

We have retained Sell rating on Wipro with a September 2018 target price of Rs244 (down 16% from CMP. Rs228 previously) based on 11.0x September 19E earnings. 11.0x P/E is at a 20% discount to the target P/E multiple assigned to Infosys/TCS. We believe our target P/E multiple is justified on a poor run in organic growth and poor return ratios. 

 

We believe it is also justified on the basis of lack of turnaround in business metrics and the fact that Wipro possibly has the worst RoIC in the industry because of poor organic growth and returns-dilutive acquisitions. We believe the stock is currently supported by the ongoing buyback (7% of outstanding equity)

12:27 PM

Buzzing stock

 

JBF Industries soared almost 20% to Rs 237 on the BSE in early morning trade after the media report suggested that the company is in discussions with potential buyers for a stake sale. READ MORE

12:09 PM

Interview of the day

 

Markets regulator Securities and Exchange Board of India (Sebi) has said a mutual fund house can have only one scheme per category. The move will impact a number of fund houses, particularly the larger ones that operate as many as a dozen schemes in some categories. Anthony Serhan, managing director, research strategy, Asia-Pacific at Morningstar, says the new rule is harsh. READ FULL INTERVIEW

Anthony Serhan, MD, research strategy (Asia-Pacific), Morningstar

11:57 AM

Nifty extends losses; top five losers on the index 

Source: NSE

11:33 AM

Buzzing stock 

 

Nucleus Software Exports surged 19% to Rs 389, also its 52-week high on the BSE in intra-day trade, after the company reported 36% quarter on quarter (q-o-q) growth in its consolidated net profit at Rs 15.66 crore in September quarter (Q2FY18). The IT software products company had reported profit of Rs 11.51 crore in the June quarter (Q1FY18). READ MORE

 

11:17 AM

Markets check

At 11:15 am, the S&P BSE Sensex was trading at 32,522, down 86 points, while the broader Nifty50 was ruling at 10,195, down 38 points.